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♪ dennis: three long weeks. that is how long cbs has been dark in over 3 million homes in new york, l.a., and dallas as it fits over fees with time warner cable. today tw see when nuclear, offering subscribers free indoor antennas so they can receive cbs the old-fashioned way over the airways. time for the sec to step in? with more on this, robert mcdowell who quit only weeks ago as a member of the fcc. good to see you. first of all, tell us what you think about this fight now in day 21 after that one hour reprieve last night in new york so they could show eliot spitzer in a debate. what do you think about this verses other recent fights? especially nasty, par for the course? >> most of these get resolved without any controversy or news worthiness or news coverage

whatsoever. this one is among the nastier ones. there was one about three years ago etween fox and cablevision. that was a pretty nasty one with full-page ads in the new york tis and the "wall street journal" doing. but the vast majority of these things get signed without any coroversy and no one even knows. dennis: now, some people are asking why the sec has stepped in. these guys never saw a few that did not want to get into and regulate. when might they do it? >> well, the sec does that have the legal authority to do very much of anything. dennis: that doesn't stop them. go ahead. >> it has not stopped them before. i know from my seven years at the sec, personal experience. it's a bit of a tar baby once you try to mediate these disputes between cable and broadcasters. they stopped talking to each other at that point. the talks break down. the way for the government to do something, even though they know

that the government won't. just in case they stop. and so then that increases the likelihood that broadcast signals will be pulled from cable systems and the consumers are left in the dark. as we are now learning from the time warner cable offer, you can geget the signals for free over the air if you use an antenna the old-fashioned way. dennis: and if you like lots of snow. have you ever tried to receive and over the error signal in new york city? it is not easy. if these guys don't grow up and put away eir testosterone, aren't they risking that the sec or congress will get involved? we already have senator john mccain. let people pay. these guys running a real risk here that the government will come in and start pushing them around? >> so cable companies will urge senators and congressmen to write the fcc. consumers fro back home will also call their congressman to

say they want cbs back on their cable system. and that can lead to a congressional action or at least strongly worded letters from the senate to get the sec to act or the introduction of legislation. you know, it's very hard for congress to agree on almost anything, including things they're supposed always agree on like budgets. something this controversial and contentious and complex is going to be hard for congress to do. look to the fcc to see if the new chair who could be swornin sometime in the fourth quarter, tom wheeler, will he try to get the sec to act in this aa? dennis: of course they have tried to poke their nose into other tense. it went after comcast. you're not allowed to charge higher fees for carriage to people. and then two or three federal court rulings. way overstepping. well, the a fearless forecaster.

what happens to end this thing? >> the market will wk. nfl season is coming as of september the eighth. that is most c programming. incentive for both sides to resolve this dispute before the nfl season heats up. viewers want to watch those games. there will want to rea a deal. it is all about money. so i think it will be resolved. there will be resolved. dennis: all right. faith in football. thank you for being with us. >> site you having me. dennis: good weekend to you. later in the show, a day after the nasdaq shut down for three long hours, we still have more questions than answers. next, they are supposed to be looking out for the little guy, but we will show you how the new consumer financial protection bureau actually could be making things worse. ♪ the boys used double miles from their capital one venture card

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dennis: coming up next, yet another federal agency running wild with power. we h

♪ dennis: it's supposed purpose is to empower and protect the consumer, but is the new consumer financial protection bureau taking its power to far? with more on this, a partner at the law firm ballard spark. thank you for being with us. i am a real fan of the e-mails your firm sends out. you're watching this bureau like crazy, and they seem to be staring thousands of small

businesses as well as some large businesses. what we go into a couple of areas where they're doing some things as car with swipe fees. did they have a dog in that fight? >> an excellent question. the federaleserve came back to a ruling that came out earlier this month that said that the federal reserve said swipe fees too high for debit cards. and so the federal reserve came back and sai that they are interested in appealing at. from the perspective of the cfpb, whether they have a dog in this fight, it is something that will watch closely. possible that they will file an amicus brief in this particular area on the litigation with the federal reserve court. however, i think that they have other things to focus on. but the concern that they would have certainly is that every time the consumer uses a debit card their is a feat that is tied to that debit card.

and often that is passed directly to the consumer and certainly that is something that the cfpb is watching closely. dennis: when congress decided that those fees are too high and american express and visa are so mean and then cap the fees, the bank's turnaround in raised fees on using debit cards straight to consumers anyway. maybe they should let the free market decide. if the store does not want to take american express, let it. moving on to another topic, what about this database of individual consumer financial information and cooperation, basically on every consumer in the country. this sounds kind of nsa. >> it is not every consumer, but it is definitely a random set of many consumers in the country. and the points that the cfpb is trying to make with this database is in the working in cooperation with one of the credit bureaus to pull individual consumer affirmation and then require financial

institutions to provide individual a confirmation on those consumers so that the cfpb can put together a database that they claim could then be used to really understand the mortgage market. this seems to make a lot of sense from that perspective. the question really is, is it necessary to be focused on individual consumers at the individual level? dennis: yes. >> a big step for the government to be taking that kind of approach. dennis: and if the government wants the information, how about the come and ask me instead of asking my bank. ve also read that i believe that the consumer bureau has sent out requests, thousands of small businesses. some hardware store as a credit account for customers, they want to know about the ierest rates . these are people not accustomed to hearing from some federal agency which has no control over its power by congress. total budget authority on its own.

>> that's right. the budget is a part of the federal reserve and congress. in allocations process cannot control the behavior of the cfpb through funding. and as to go into the small businesses and asking them about their credit behavior, it is an interesting perspective and certainly these are businesses that are not used to having to deal with the regulator. it can seem very intrusive. putting it in a different way of thinking, understanding what smaller businesses to versus big banks is probably a good thing for the consumer alternately. denn: okay. one last point. it jus seems other agencies an ounce rulemaking, ask for comment. it seems like this agency rules by punishment. it goes out, strings of some guy and lenses them and then says @%w we have some new rules.

>> i think that really is the impression. the cfpb through a number of reasons seems to be focusing on putting out enforcement actions and staying away from telling instries what they can expect fairly deregulation. dennis: this just seems to be this anti bank banned after this big consumer protection board. i think it's a bad development. thank you for being with us. >> thanks. dennis: okay. -ime for look is stories you're clicking on tonight. stocks closing slightly higher after vacillatingetween small gains and losses. despite a startling drop in new-home sales which send money to bonds and gold. the 13 year reign of microsoft's chief is coming t an end. the search for a new ceo has begun. valued at some 600 billion.

now it's down to 270 billion. ahead, central banks around the world should not cut off their easing money policies. kristine lagard said europe and japan still need help. she spoke at the federal reserve annual compass -- fly-fishing extravaganza. president obama's that law ears instead ofu.s. should be three. students learn all they need from a classroom in two years. i am wondering who asked him. it is all part of this 2-day bus tour promoting ways to cut costs for students. those are some of the house stories right now on foxbusiness.com. and coming up, mortgage rates jumping. home sales plummeting. is this housing market recovery really for real? and next, officials say it was only a 30 minute problem at the nasdaq. why was that stock trading shut down running for three hours just today? we will take a look at the mixed messages on the flash freeze. ♪ copd makes it hard to breathe...

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♪ >> from the fox business studios in new york city, it's "the willis report." ♪ dennis: what is a crisis without a great nickname? the nasdaq flash freeze, a public-relations nightmare. the mysterious glyphs a grounded trading to a halt also resulted in gobbledegook statements that no one could understand. joining me now, managing director at chaplain capital investments and the president and cio of ng capital group. thank you for being with us. i want you to listen to a sound bite from the ceo of nasdaq talking to liz claman earlier today. first give a listen. >> well, our communications system worked well yesterday. it could always be improved. the first order of business is to focus on solving the problem

and then deal wiih people directly involved with the problem. in one of those open lines we have people representing our issues on the call. th were there to give regular updates. the formal update out after the close of trading which wanted to do. i think we did well. dennis: let's start with you. communications system worked well? at think we've worked well. as you been smoking? >> i don't think so. honestly, if he has then i have. i think they did a great job. if you really understand the nasdaq, it's different than the new york stock exchange. this is a very decentralized trading system priest had been shut down for a half-hour and get it back up, they did a pretty good job. dennis: first of all, it was three hours. second of all, traders, investors, nasdaq listed companies went for hours without any explanation. we in the public and more and partly we in the media are waiting for them to say

something to read when they finally say it is utterly indecisive. how do you think the nasdaq fair? >> on a public relations scale, of course you are totally right. there was no communication. no communication is bad and creates fear. however, i think the situation here is so much better than we had two years ago. what we saw were stocks that were $30 cut down the dollar. i think when he says week faired pretty well, the massive amounts of money or not lost and we still have the market opening. continuing to trade seamlessly. from of pr standint, everyone was angry, but also the market. the market was telling us, there was no terrorism. this was not any kind of -- dennis: all right. the thing is -- go head.

>> it looks like to against one. dennis: two against one. the thing is, what hillary is saying, nasdaq did not do that, we did. investors and traders. we are the ones who held their head and did not panic. now, the thing i keep thinking about is that where this outage hurt worst was high-frequency traders who were putting in thousands of trades per microsecond, executing a small number trying manipulate the spreads and making bold and little quarter pennies on their different trades. those guys must've been going crazy. what do you know? >> and that is exactly -- i completely agree because what they do is trade in 40 to 60 milliseconds. at some point they had an open position. they're used to buying something and simultaneously selling within 40 to 60 milliseconds. they were short on one side. when it opened up i guarantee you there will be a lot of lawsuits coming from some of those trade saying we were damaged because of this.

get ready for that. >> there is going to be more litigati. the nasdaq just settled with the sec, $10 million over the facebook debacle. now, bob learned a lesson there, and that was don't open your mouth and don't talk until you are really sure about what goes on. in this case it worked t his detriment. however, let's not forget september 11th, 2001, the nasdaq kept trading. nasdaq stepped in. what we see here is the competition can be good and helping. dennis: oh, but hillary, that was so 12 years ago. heroic and. >> it showed the importance of technology. and we cannot forget what the nasdaq has become. going to a controlled company to a publicly traded nasdaq. dennis: let's go back. >> i like this hillary. i really like her.

dennis: when something like this goes wrong, which would you prefer as a guy in the business, that the ceo of the nasdaq comes out right away and says we are looking into it. right now i don't know anything. he sta on tv and is talking all day. or would you prefer other silence and then at the end of the day they come out with some incomprehensible statement? >> of course that technology in getting that back up and going is great. from the standpoint of communication, you have to communicate because people will naturally get fearful without knowledge. people will start doing things they should not do. absolutely shouldave had better communication. dennis: hillary. >> just remember -- dennis: i have a question. my questions are far more important than your answers. [laughter] but it occurs to me, everyone saying this will further undermine confidence among small investors. really couldn't you give a message until small investors that this should not undermine

your confidence? this is not worth worrying about. >> it isn't worth worrying about because we saw the proof is in how the market closed. it closed at. we were able to jump right back in there. we should never forget that bothers the tech guide. he has led the nasdaq to a global international success, a lot of foreign companies public and does so much more. maybe he's not the best communicator, but he is an awfully great technology guy. dennis: also supposed to be a very generous guy. think he will be sending bottles of champagne to both of you. some of the best news he has had in 48 hours. thank you for being with us. have a great weekend. now we want to know what you guys think. here is our question. does the nasdaq freeze make you afraid to invest? log on to gerriwillis.com and vote on the right hand side of

the screen. we will share the results of the end of the show. coming up all next week in the 6:00 p.m. eastern hour on fox business, nine of me and all charles payne. he will demystify the stock market, helped you share your fear and prepare for a more prospeus future in the can't miss special, making your rket. this guy is great. takes a hit. again, that is all next week. you will make some money. when we come back forget your smart phone. your dishwasher may be spying on you. we will explain. next economists keep saying the housing market is recovering. new numbers show that may not be the case. stay withs. ♪ every day we're working to be an even better company -

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dennis: sales of new homes plunging to a 9-month low, dropping 30 and a half percent in july from june. mortgage rates are still taking up a the housing recovery losing steam. with more on this, anthony sanders, real estate professor at george mason university. thank you for being with us. i know one month does not a trend make. >> i was predicting this a while ago. when interest rates and mortgage rates started to creep up we started watching mortgage purchase applications nosedive. mortgage refinance rates nosedived. new home sales went nosediving as well. so this -- bernanke has bought the house in bubble. dennis: is that a od or bad thing for the economy? >> i think we made a big mistake

in the last decade. we put all our eggs in the housing basket. the economy crashed. i think it's better that we treat housing more as a consumption good rather than an investment good d get back and start doing real investments in this country. dennis: the problem is that with housing it's a nice multiplier effect for the rest of the economy for growth. when housing sales and get it turns out home depot sells most of to fix up the house. terms of employment is better for construction. are you worried slowdown is actually going to ht economic growth? >> they will, of cours the point in trying to make is that we have superb numbers in the last decade based on housing. very low unemployment. higher unemployment rates. the housing sector is gone away. i don't think this is really going to of manifest itself in the something positive.

dennis: okay. it seems to me that maybe home buyers and owners have become a little addicted to the idea of really scant, low interest rates. if you look at where 30-year mortgages have gone, and tens of the actual increase in the price you have to pay, it is in some months that i should ju give up my dream. we are running something right now showing mortgage rates. what do you think? >> again, mortgage rates a near all-time lows. the bad news is that people at the margin are still looking and rising rates. again, when we have a stalled economic recovery, 75 percent of new jobs that are created a part-time and $700 trillion spin off balance sheet liabilities that we have to pay for. i don't think there's a lot of confidence out there in the economy to begin with there actually going to manifest itself very quickly. dennis: rather than getting people to not buy homes, why

shouldn't they prod more people to speed up and go ahead and buy now? do you think rates will go only a premier? is someone is shoppg for a moment to be smarter to buy now? >> a couple of us to follow this have been reviewing that story. people who actually jump ahead when they think rates will go up. we just all see that evidence occurring. we will rates go up? absolutely. i think the fed has kind of lost control of the interest-rate market. still buying 88 billion per month. it's just not doing much good anymore. rates keep rising. rates will go up. one hundred, maybe even 200 basis points. dennis: aren't they just kind of a sign of a stronger economy than we think? aren't they just in some way contradicting the very economic sluggishness we have been talking about? >> on the one hand ordinarily in a normal economy, yes. rising rates are indicative of the fact the economy s growing and healing.

take a look the employment numbers, gdp growth. it's just stalled, yet rates are rising. why? because the other side of that is that investors around the world will start demanding a risk premium from the u.s. treasury for holding the debt. dennis: right. although let us point out the u.s. treasury is still by far the lowest risk acid you combine of any government bonds anywhere around the world. the one eyed man is king in the kingdom of the blind. dennis: -- >> remember that dave hamilton steady from quito. its00 trillion. the rest of the world knows we cannot pay and off. dennis: all right. you are depressing me. but will do is rappee right now. thank you very much for being with us. have a great weekend. okay. still to come, not just the government spying on you.

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♪ dennis: cisco calls it the internet of everything. more products than ever before linking up to the intnternet, we're talking security alarms and a power mears, refrigerators, even dishwashers. they're is a dark side. joining me now, adam levin,

chairman of identity theft. thank you for being with us. we appreciate it. i remember years agon the early 90's we did an interview with this big digital soothsayer guy. the next big thing after the internet. things that think and link. winking of things to the internet. twenty years later it is happening. maybe this is not such a good thing. why? >> well, the concern is that innovation empowers us. but innovation and technological advances that empower us also can create vulnerabilities. and the more data that is collected about us and the more conduit's there are into our lives and weighs the some of these devices can actually be looking at us recording what we do , creating behavioral tcking gives people an opportunity to not only have a better idea of what we're doing, but where we are and when we do what we do so

that they can plan strategies whether it is stocking, burglarizing, or using the internet as a conduit not only to bounce off these devices but to crawl into things like the computers will use to connect to them whether routers that connect us. and then all of a sudden we have a problem where someone can create identity of scenarios. dennis: for viewers, the reason companies that make these devices would want to hook up to the internet, your refrigerator since it has its own belt and said the engine to my it sends out an e-mail to the repair shop anthey have a guy schedule to come fix it before he even knew there was a problem. electric meters to be read with the truck driving by. you would have to send the guy into the home to look if the meter. the spill by categories. i can see why your cable television box in your tv screen. i don't want people knowing now what is the spice channel. >> the problem is that they can,

if they hacked into the system -- and senator schumer sounded the alarm a few weeks ago. there was a flaw in the samsung's system which they said they patched. we don't know whether it exists in other systems. u don't want this to be watching you. you don't want it to be recording you. let's say something is going on in the living room that is very private. you don't need to share that with potentially millions of people. if someone were to record and release it. you also don't need to know if someone who you don't know just to figure out what your patterns are for the purpose of being able to better zero win on how to get to you. for instance, the repairman the shows up your door may not be of repairperson. it may be someone sent by the hacker. could be nefarious reasons. these are areas of great concern. dennis: we have to wrap. appreciate you being here. let's run down the west. your dishwasher, clothes dryer,

toaster, clock radio, lights, heat, ac, security alarms, and so on palms, it pacemakers. for me it's still the television. thank you for being with us. >> thank you. dennis: also, the nex batman. brilliant choice or bogus? one of the top trending has tax on twitter was better batman then been affleck. we thought we would put together our list. the worst casting of super heroes. tonight's top five. number five post a two actors, george clooney and chris o'donnell. cluny had his moments. the spare me the visible nipples on his costume. the won hit wonder. and next up, edward norton, the incredible hulk. no one really knows why. it did not make the same mistake twice. very publicly dumping him. and our pick for number three,

write ann reynolds says the green lantern. talk about bad reviews. a flop at the box office. number two, nicolas cage. the second time playing johnny blaze. the vengeful motorcycle rider. the number one totally miscast superhero is ben affleck. not as bad man. the 2003 film the dare devil. he joked that he would never play a super hero again. many fans will she had kept that promise. we will be right bk with the answer to our question of the day. does the nasdaqreeze make you afraid to invest? man up. ♪ my mother made the best toffee in the world. it's delicious. so now we've turned her toffee into a business. my goal was to take an idea and make it happen. i'm janet long and i formed my toffee company through legalzoom. never really thought i would make money doing what i love. [ robert ] we created legalzoom to help people start their business and launch their dams.

go to legalzoom.com today and make your business dream a reality. at legalzoom.com we put the law on your side.

>> regulators want to take a closer look after the latest glitch brought nasdaq to a halt in trading for three hours. afraid to invest? we asked this, and 31% said, yes, it does. 69%, the brave among us, said no. on to other topics.

e-mails that recent fight for wages, david from arkansas says no way should the minimumwage be $15. up employment goes through the roof, and fast food can raise prices or cut the work force. minimum wage is for beginning work. when you do a good job, get experience, and make more money. minimum wage is not for life. well told. another says, fast food workers should be paid at least enough per hour to afford medical insurance and stay off food stamps. why should the taxpayers subsidize the ceo pay and fork out the bucks, not us. same for walmart. to e-mail the show, go to gerriwillis.com, and next week, there's a special series "making your market," they are not for institutional investors, but everyday people who are too afraid, too confused, too unsure to invest. charles payne will give you a main street view of the market

starting monday at six. meanwhile, that's all for tonight's "willis report," i'm dennis kneale. thanks for joining us. lou: the house taking on obamacare. navigating to push and coax americas into obamacare. an essay now capable of are treating 75% of all internet traffic. the irs going after tax exempt groups. they president bypassing congress to push a cell phone tax to pay for internet in all schools. a senate majority leader determined to up the